''claims that Microsoft intends to ship a $500 standard console as well as an alternative subscription model for $300. As speculation has suggested, the new system will require an Internet connection to properly function''

$500 seems a bit expensive. If PS4 launches at say $399 then MS could end up in the same boat Sony was when they launched the PS3 for $600. MS is flirting with the outer boundaries of your average console consumers comfort zone. Sony learned that lesson the hard way but maybe MS will have to as well.